Bank of China funds waste to energy project

C&G Environmental Protection Holdings will get a group credit facility of RMB2.284b for its capital expenditure requirements.

In a release, the Board of Director of C&G Environmental Protection Holdings Limited announced that Bank of China, Fujian, (“BOC”), has granted a group credit facility of RMB2.284billion to the Group, subject to terms and conditions.

The purpose of the facility is to finance the capital expenditure requirements of the Company’s subsidiaries which are engaged in the Waste to Energy (“WTE”) business. The facility will provide additional funding of RMB1billion for existing Build to Operate (“BOT”) WTE projects that the Company has secured and new WTE projects that the Company is bidding or will be bidding in China, thereby enabling the Company to expand its Municipal Solid Waste (“MSW”) handling, incineration and power generation capacity.

Of the RMB2.284billion group credit facility, RMB1.284billion has been granted previously as separate facilities for specific projects that include five WTE plants: Anxi, Fuqing and Jianyang in Fujian; Huangshi and Xiaogan in Hubei.

Of the RMB1.284billion designated amount, RMB793million has been drawn down in the financial years 2010 and 2011 as project loans to facilitate the construction of the above mentioned projects. The remaining designated amount, RMB491million, will be drawn down at a later date. The balance of RMB1billion – which remains undesignated - will be available for 2 existing projects that has yet to commence construction (Yingkou in Liaoning and Nanping in Fujian), as well as future draw downs as and when new WTE projects within
China are won on tender.

C&G’s Executive Chairman and Group CEO, Mr Lin Yan said: “We are very pleased to have been successfully granted the credit facility by BOC. Given the current credit environment in China, this is a clear signal that our WTE business has gained more recognition and wider acceptance, with full support from large and reputable financial
institutions. BOC’s firm support also demonstrates its confidence in our Group’s abilityto execute our growth strategies.”

The granting of the credit facility is also a testament to C&G’s commitment to its shareholder to ensure that the Group has the ability to undertake potential projects that will deliver returns for shareholders.